Have you been saving diligently for your dream house in British Columbia and pouring over Pinterest ideas and magazine articles for ideas about design, architectural style and finishes? Are you ready to take the next step, but stuck on where you should build this home and how you can secure the vacant land to make your dream a reality? There are somewhat different rules and practices when it comes to buying vacant acreage for sale in BC as opposed to a developed lot in the same area.
Buying acreage for sale in BC
Just a few of the things you need to think about before putting an offer down on acreage for sale in BC include…
Securing your funding
If you don’t have the money to purchase the site for your dream home in cash, then you’re going to need a land loan. Your access to a bank loan will depend on how you intend to use the land. We’re assuming that you what to build on the property at some point. To show that intent to the bank loan officer, it’s important to make sure that the land you have your eye on is zoned for residential properties. In addition, banks prefer to lend money for vacant land that has improvements and infrastructure. That means, it’s better if your land already has access to utilities and a paved road leading to it.
Loans for vacant land in BC usually carry higher interest rates and a higher down payment requirement. That’s because the bank doesn’t have a structure that it can foreclose on if you aren’t able to make your loan payments. The bank reasoning is that you’d be less likely to leave a home than a vacant piece of land.
Improvements (or lack thereof)
If you are able to pay for the land in cash, it’s still important to consider the improvements (or lack of improvements) on the property. For example, does the land have a reliable water source that you can tie into with a well? Is there room to put in a waste removal system? Are there any soil contamination problems with the land? Does the city, village or other municipal entity offer services like trash removal or water?
All land is taxed in British Columbia, even lots that don’t have any improvements or infrastructure. Make sure that you include those taxes in your budget even before you build.
Land transfer tax
All properties in British Columbia are subject to a land transfer tax when the property is registered in a new name. This tax is based on the value of the property and on the improvements or structures on the property.To learn more about buying acreage for sale in BC, contact Cascadia Pacific Realty LTD at (insert contact info). Our veteran property agents have been helping people like you find the perfect piece of land for their dream homes for more than 30 years. We can help you navigate the special rules and requirements associated with purchasing vacant land.